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1. Company Snapshot

1.a. Company Description

Société Générale Société anonyme provides banking and financial services to individuals, businesses, and institutional investors in Europe and internationally.It operates through three segments: Retail Banking in France, International Retail Banking and Financial Services, and Global Banking and Investor Solutions.It offers retail banking services, such as consumer credit, vehicle leasing and fleet management, financing of professional equipment, and long-term leasing activities under the Societe Generale, Credit du Nord, and Boursorama brand names; and insurance products, including home, vehicle, family, health, and mortgage insurance.


The company also provides corporate and investment banking, securities, market and investor, financing and consulting, and asset management and private banking services.In addition, it offers security brokerage, equipment finance, cash management, payment services, factoring, and supply chain financing services.The company serves through a network of 1849 branches.


Société Générale Société anonyme was founded in 1864 and is based in Paris, France.

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1.b. Last Insights on GLE

Société Générale's recent performance was driven by a sharp improvement in profitability, with net profit margins reaching 18.2%, up from 7.4% the previous year. The company's EPS surged, fueled by annual earnings growth of 164.4%. Its Q3 2025 earnings revealed a strong revenue growth of 6.7% and a group net income of €4.6bn, up 45%. However, the lender's tempered expectations for a further share buyback led to a decline in shares. The company's cost/income ratio declined sharply to 63.3%. Its ROTE stood at 10.5% in 9M 25, above the 2025 target.

1.c. Company Highlights

2. Societe Generale's Q3 2025 Earnings: A Strong Performance

Societe Generale reported a solid performance in Q3 2025, with revenues increasing by 4.5% year-over-year to EUR 6.8 billion, excluding disposals, driven largely by a 4.7% increase in Net Interest Income (NII). The group's net income reached EUR 1.5 billion, the second-highest third quarter since 2006. Earnings Per Share (EPS) came in at EUR 3.46, significantly beating analyst estimates of EUR 1.69. The cost-to-income ratio improved to 65.7% from 70.1% in Q3 2024, indicating better operational efficiency.

Publication Date: Nov -03

📋 Highlights
  • Revenue Growth:: Revenues increased by 6.7% to EUR 20.5 billion for nine months '25, excluding asset disposals.
  • Cost Efficiency:: Cost-to-income ratio improved to 63.3%, below the 2025 target of under 65%, with Q3 '25 at 65.7% (vs. 70.1% in Q3 '24).
  • Net Income & ROE:: Group net income reached EUR 4.6 billion in nine months '25, with Return on Tangible Equity (ROTE) rising to 10.5% (+3.4 p.p. YoY) and Return on Equity (ROE) under Basel IV at 14.9% in Q3.
  • Capital Strength:: CET1 ratio at 13.7% as of Q3 '25, exceeding the 13% target, with EUR 328 billion in liquidity reserves (LCR: 147%, NSFR: 117%).
  • Business Segment Performance:: Mobility Financial Services grew revenues by 12.4% YoY, while Global Markets & Investor Services achieved EUR 1.4 billion in Q3 revenues, driven by 12% FICC growth.

Segmental Performance

Global Markets and Investor Services achieved a high level of revenues, above EUR 1.4 billion during this quarter, up by 0.5% in Q3 '25 versus an already very strong Q3 '24. Mobility Financial Services reported a 12.4% increase in revenues at constant exchange rates and perimeter. Consumer Finance delivered a good quarter with revenues up 6.6% year-over-year, benefiting from margin expansion, mainly in France.

Asset Quality and Capital Position

The cost of risk decreased to 37 basis points in the quarter, down from 48 in Q3 '24. The group's CET1 ratio stands at 13.7% at the end of September 2025, a level above the target of 13%. As Slawomir Krupa stated, "we'll remain rational and consistent in managing excess capital."

Valuation and Outlook

With a Price-to-Tangible Book Value (P/TBV) ratio of 0.64 and a Dividend Yield of 1.1%, Societe Generale appears to be reasonably valued. Analysts estimate next year's revenue growth at 2.5%. The bank's commitment to delivering a cost-income ratio below 60% in 2026 and its focus on improving efficiency through various initiatives, including the use of AI, are positive indicators for future performance.

Management's Guidance and Strategy

Societe Generale has no intention to accumulate excess capital and will consider distributing it through buybacks or dividends when organic growth at high marginal rates of return is not possible. The bank is committed to reducing its costs per unit of revenue and RWA, and is open to considering a mix of buybacks and dividends, as well as inorganic growth opportunities.

3. NewsRoom

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Societe Generale: Information regarding executed transactions within the framework of a share buy-back programme

Dec -01

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Is Société Générale Still a Bargain After 115% Rally and Strategic Restructuring in 2025?

Nov -26

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Societe Generale: New description of the share buy-back programme and report on the purchases performed

Nov -21

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SocGen Announces New €1 Billion Buyback to Start This Month

Nov -17

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Societe Generale: New additional share buy-back programme of EUR 1 billion

Nov -17

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Amundi : Continuation of the long-term partnership with Societe Generale

Nov -17

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Société Générale (ENXTPA:GLE): Exploring Valuation Following Strong Year-to-Date Share Price Gains

Nov -16

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Societe Generale: shares and voting rights as of 6 November 2025

Nov -14

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.75%)

6. Segments

French Retail and Private Banking

Expected Growth: 2.5%

Société Générale's French Retail and Private Banking segment growth of 2.5% is driven by increasing demand for digital banking services, expansion of wealth management offerings, and strategic partnerships. Additionally, the segment benefits from a strong brand reputation, a large customer base, and a solid financial position, enabling investments in innovation and customer experience.

Global Markets and Investor Services

Expected Growth: 3.5%

Société Générale's Global Markets and Investor Services segment growth of 3.5% is driven by increasing demand for hedging and risk management solutions, growth in equity derivatives and prime brokerage, and expansion in Asia-Pacific and Americas regions, supported by strategic acquisitions and investments in digital platforms.

Mobility and Leasing Services

Expected Growth: 2.0%

Société Générale's Mobility and Leasing Services segment growth of 2.0% is driven by increasing demand for alternative mobility solutions, expansion of fleet management services, and strategic partnerships. Additionally, the segment benefits from a growing trend towards sustainable and environmentally friendly transportation options, as well as investments in digitalization and innovation.

International Retail Banking

Expected Growth: 2.8%

Société Générale's International Retail Banking growth of 2.8% is driven by a strong presence in emerging markets, particularly in Africa and Eastern Europe, where economic growth and financial inclusion initiatives are boosting demand for banking services. Additionally, the segment benefits from a diversified revenue stream, including fees from payment services and insurance products, as well as a solid cost control strategy.

Financial and Advisory

Expected Growth: 3.2%

Société Générale's 3.2% growth in Financial and Advisory is driven by increasing demand for M&A advisory services, growth in equity and debt capital markets, and expansion in emerging markets. Additionally, the segment benefits from the bank's strong franchise in Europe and its ability to leverage its global network to deliver cross-border transactions.

Corporate Centre

Expected Growth: 1.8%

Société Générale's Corporate Centre growth of 1.8% is driven by efficient cost management, optimized resource allocation, and strategic investments in digital transformation. Additionally, the centre's focus on risk management and regulatory compliance has enabled the bank to maintain a strong capital position, supporting its growth momentum.

Insurance

Expected Growth: 2.2%

Société Générale's 2.2% growth in insurance is driven by increasing demand for life insurance products, expansion in emerging markets, and strategic partnerships. Additionally, the insurer's digital transformation efforts, improved risk management, and cost savings initiatives have contributed to its growth.

7. Detailed Products

Retail Banking

Société Générale provides a range of retail banking services to individuals, including current and savings accounts, credit cards, personal loans, and mortgages.

Corporate Banking

Société Générale offers corporate banking services to businesses, including cash management, trade finance, and risk management solutions.

Investment Banking

Société Générale provides investment banking services, including mergers and acquisitions, equity and debt capital markets, and leveraged finance.

Asset Management

Société Générale offers asset management services, including investment solutions for institutional clients, individual investors, and wealth management.

Private Banking

Société Générale provides private banking services, including wealth management, investment advice, and estate planning.

Insurance

Société Générale offers insurance products, including life insurance, non-life insurance, and health insurance.

Specialized Financial Services

Société Générale provides specialized financial services, including vehicle leasing, fleet management, and consumer finance.

8. Société Générale Société anonyme's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Société Générale is moderate due to the presence of alternative financial institutions and digital payment platforms.

Bargaining Power Of Customers

The bargaining power of customers is low due to the lack of negotiating power of individual customers and the complexity of financial products.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of multiple suppliers of technology and services, but the high switching costs.

Threat Of New Entrants

The threat of new entrants is high due to the increasing trend of fintech companies and digital banks, which can easily enter the market.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of multiple established players in the market, leading to a highly competitive environment.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 84.78%
Debt Cost 11.61%
Equity Weight 15.22%
Equity Cost 11.61%
WACC 11.61%
Leverage 557.08%

11. Quality Control: Société Générale Société anonyme passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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A-Score: 6.3/10

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Quality: 5.5

Yield: 4.4

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

61.54$

Current Price

61.54$

Potential

-0.00%

Expected Cash-Flows